How to Cope with Inflation in the FMCG in 2023

Inflation in 2023 will continue to rise and as with any business, you should find a way to cope with it in FMCG. Find out a few tips to implement!

This year is one of the hardest for the FMCG industry, and 2023 might be the same – inflation, energy crisis and tight market competition – and current survey results reflect that.

Of those surveyed, 52% reported an increase in cost per product in 2021, and that number has skyrocketed to 81% this year.

Another problem is that rising costs are being passed on to customers making it harder to keep up with competitors.

Knowing all these issues, we put together research conducted with companies in the industry so you have new ideas to implement changes in your teams. Here are a few ideas on how to cope with inflation in the FMCG in 2023:

1. Online dashboard for team collaboration.
2. Customers’ data security.
3. Know your products in demand.

Online dashboard for team collaboration.

In the current economic situation with rising inflation in the FMCG, keeping your customers is essential. Especially when improving customer retention by 5% can increase profits from 25-90%.

However, with the unpredictable nature of processes, there is friction with customers over increased prices, delivery delays and lack of communication.

So, here is the first tip to cope with inflation in the FMCG – implement an online dashboard for team collaboration.

✅ Have all your orders automatically processed onto the platform with no need for manual keying.

✅ See customers’ orders in one place to provide the latest information and check insights.

✅ And have real-time updates to avoid delivery and shipping delays.

Customers’ data security.

Although storing order details in one place is an efficient way to deal with data, many customers might be concerned about the security of their details. Now, you can also tackle it with the same platform as many software providers know the latest trend with various cyberattacks.

Especially when statistics show that 1 in 10 customers experienced a cyberattack within the past 3 years, and have taken steps to counter additional attacks, including installing specialised software (51%), adding enhanced cybersecurity training (46%) and keeping their production and IT networks separate (38%).

Therefore, the next step to be more stable in the current situation is to check if your software provider is taking steps to upgrade its security system to provide the safest experience for your customers and employees.

Know your products in demand.

Prices increased in an unprecedented manner this year and will continue to rise in 2023. We can see various items are affected drastically in the past few months. For example, low-fat milk grew by 42.1% and flour and other cereals by 29.6%.

Then electricity prices and wages on top of our raw materials – it’s very difficult. We are struggling to keep pace with the increases. – Food manufacturing business, March 2022

So, the last tip to cope with inflation in FCMG in 2o23 is by having a system in place that provides you information on sales and their performance:

👉 Understand which products are in demand

👉 See what is not hitting the target

👉 Identify accounts that are ready to leave your business

Although all these points are essential for any Sales team, many companies in the FMCG sector have an outdated, manual system in place, meaning they cannot easily track this information. Now, with a new platform that covers all the points above, you can also improve the visibility of your sales and power up your Customer Service team.

❇️ Get a clear picture of your products and how they sell

❇️ Provide drilled-down sales performance insights

❇️ And see if your customers have purchased after requesting a quote

All of this data is not only stored in one dashboard but also can be accessed from various locations, meaning your teams will have greater collaboration and higher performance.

Conclusion.

To cope with the rising inflation in the FMCG in 2023, you will need to update your outdated systems – be it order collection or sales performance dashboard.

And although it sounds like a complicated task, the current software market suggests many solutions for all your needs.

For example, at Allsop we know how daunting it might be to implement new technology, hence we provide a free-of-charge processes audit. From this exercise, you will receive:

✓ Full overview of your processes

✓ Identified areas of improvement

✓ Possible ROI after automating tedious tasks

Sounds good? Book today 👉 FREE of cost call.

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